A crypto lobbying group with a Singaporean base has voiced its opposition against the central bank’s proposal that crypto firms cannot lend crypto tokens.
On Oct. 26, Singapore’s central bank issued consultation papers and proposed banning digital payment token service providers from offering “any credit facility” to consumers, including both fiat and cryptocurrencies. However, the Blockchain Association of Singapore believes it might be too restrictive.
BAS was reportedly listed in a feedback form sent to Monetary Authority of Singapore. argued It is possible that crypto users could be forced to borrow their tokens from unregulated offshore firms if there is a blanket ban. BAS also pointed out that the primary reason people own crypto is because of the interest they earn.
Chia HockLai, the chairman of BAS Board, stated in a statement to Bloomberg that rather than a blanket ban, BAS suggests a more measured and targeted approach. This involves educating consumers about the potential dangers of using unregulated entities. The chairman stated:
“The proposed measures, while well-intended, might have unintended consequences if implemented in its entirety, including leading consumers to move towards unregulated service providers.”
In addition, BAS also argued that a complete ban on companies providing incentives to retail customers is “too draconian” and suggested a different way of allowing gifts not connected to financial purchases.
In the midst a number of crypto crises in the country, MAS published a consultation paper in October 2022.
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